Kenneth Hood

The appellants appealed a trial judgment finding them liable for oppressive conduct in a joint venture for property development.

The trial judge found the appellants had extracted equity from the properties through unauthorized mortgages and transferred the proceeds to their own companies, ordering an accounting and substantial indemnity costs.

The Divisional Court dismissed the appeal, finding no error in the trial judge's valuation, cost calculations, or costs award, noting the appellants' conduct was reprehensible.

The respondents' cross-appeal regarding an erroneous deduction from their capital allocation was allowed.

The appellant appealed a $40,000 substantial indemnity costs award made against it following the dismissal of its summary judgment motion.

The Divisional Court found that the motion judge erred by relying on the respondents' counsel's misrepresentation that there was no arithmetical error in the bill of costs, which had inflated the claim by $8,500.

The Court also found errors in awarding costs for appearances where no costs were ordered and for excessive preparation time.

The appeal was allowed and the costs award was reduced to $25,000.